KEY POINTS:
A big majority of privately-held New Zealand businesses say they are paying significantly more in staff costs than a year ago.
The figures are contained in a report produced by accountancy and business advisory firm Grant Thornton.
Some 79 per cent of New Zealand businesses surveyed for the report said "yes" to the question: Is it costing you significantly more, excluding inflation, to pay staff than it was 12 months ago?
In the global league table, this was seventh-equal highest, with China heading the top six with 91 per cent. At the other end of the scale was Japan, where only 17 per cent of businesses said they were paying significantly more.
"The New Zealand figure gives a bit of a lie to the general belief that wages here are being held down low," said Grant Thornton New Zealand spokesman Peter Sherwin. "The New Zealand finding won't exactly be music to the ears of unions who may be pressuring employers for further pay increases.
"What staff here receive in the hand is another matter, of course, and it is that tax factor that fuels the debate about the relentless flow of skilled workers across the Tasman to Australia."
Not surprisingly, more than 70 per cent of New Zealand businesses were either more focused, or significantly more focused on attracting and retaining staff than a year ago.
"This reflects the general shortage of skilled workers, which is undoubtedly one of the drivers of rising wages," said Mr Sherwin.
New Zealand businesses scored well for flexibility, sharing core values and fairness for older workers.
One area which New Zealand firms did not rate highly was benefit packages, such as bonuses, commissions, pensions, health insurance.
- NZHERALD STAFF
